Sunday, December 4, 2011

How should cash received as deposit by a univesity from students be treated accounting wise?

It should go to unearned revenue and cash account. But should it go to a restricted cash account? Can the university mingle the funds in a general cash account? CPA only please....Thank you.|||If you consider it as an unearned revenue, then the university may definitely use it as general cash.

If it's a deposit that can be redeemed or withdrawn, then that's the only time you can take the conservative route of placing a restriction on the use.